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Home My WebLink AboutCP 42 Ln v O - _Z� .w 1110J5 POLICY PROPOSAL DATE FILE NUMBER SUBJECT Policy of Reappraisals of PAGE_.L_.OF__2 10/10 78 L .CP-42 Improved Property PROPOSAL PROPOSED BY: CA1TY MANAGER'S REVIEW Hugh Parmer, Mayor ' 'u 11 '(._+ The City of Fort Worth currently employs a quadrenial cyclical reappraisal process to assess real property under which process one-fourth of the real property within the City is reappraised each year for ad valorem taxation. In addition, it is also the policy of the City of Fort Worth to reappraise all buildings including residences which have been improved during a year. It is the desire of the City of Fort Worth to encourage improvements to and main- tenance of residences by all the citizens in all sections of the City as well as to particularly encourage the rehabilitation of the properties in the older sections of the City. It is also the desire of the City of Fort Worth to mitigate the impact of ad valorem property taxes on the citizens of the City when and as it is practical and legal to do so. The increase in"value and concomitant increase in taxes resulting from an improvement to a residence may serve as a deterrent to home improvement. Recommendation It is recommended that: 1) The City Council establish a policy of deferring the reappraisal of resi- dences having new improvements costing under $10,000 until the area wherein the residence is located is reappraised by the City Tax Office under the quadrenial approach by adopting the attached resolution; 2) The cost of improvements shall be determined by the value thereof as shown in the Building Permit Application obtained by the owner of the residence from the Building Inspection Division of the Public Works Department of the City of Fort Worth prior to commencement of work on said improvements; 3) When the area where a residence which has been so improved is reappraised, such improvements as have been made will be considered by the City Tax Office in reappraising the value of such residence in accordance with existing laws and policies of the City; and, 4) This policy shall take effect from and after January 1, 1979. LEGALITY JZ FISCAL NOTE CITY MANAGER'S COMMENTS POLICY PROPOSAL (cont'd) PAGE-LOF 2 0011, Legality: Approved. Fiscal Note: Based on experiences in recent years the following analysis shows the potential revenue loss. Potential Tax Loss Four Year Period AREA 1 AREA 2 AREA 3 AREA 4 TOTAL PER YEAR 1979 Reappraised $3,802 $3,802 $ 3,802 $11,406 1980 $ 3,802 Reappraised 7,604 7,604 19,010 1981 7,604 3,802 Reappraised 11,406 22,812 1982 11,406 7,604 3,802 Reappraised 22,812 This analysis assumes that the reworks and tax rates will remain constant. City Manager's Comments The revenue loss resulting from this proposal is minimal. The proposal may sti- mulate residential rehabilitation and thereby complement several existing programs. f Hugh rmer, Mayor CITY OF FORT WORTH, TEXAS TIS SU.3d' JT MATTER OF THIS M. &C• t wAS PR,;S::rT_;D TO THE CITY COUNG. AND WAS ffr — LIPFROVER City Secretary. CITY OF FORT WORTH I A Resolution WHEREAS, the City of Fort Worth currently employs a quad- rennial cyclical re-appraisal process to assess real property under which process one-fourth of the real property within the City is reappraised each year for ad valorem taxation; and WHEREAS , it has previously been the policy of the City of Fort Worth to reappraise residences which have been improved immediately upon the completion of such improvements, regardless of whether such residences are located within the area of the City designated for reappraisal; and WHEREAS , it is the desire of the City Council of the City of Fort Worth to encourage all citizens to improve and maintain their residences and to particularly encourage the rehabilitation of the properties in the older sections of the City; and WHEREAS, it is the desire of the City Council of the City of Fort Worth to mitigate the impact of ad valorem property taxes on the citizens of the City when and as it is practical and legal to do so; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH: SECTION 1 . That the reappraisal of improvements costing under $10, 000 to existing structures located on real property within the City of Fort Worth, such structures being the residence of a person or family, shall be held in abeyance until the entire area wherein the residence is located is reappraised by the City Tax Office. SECTION 2. That this resolution shall apply only to improvements costing less than $10, 000 to such existing residences, and that improve- ments costing $10, 000 or more to such existing residences as well as all improvements to structures not being used as residences shall continue to be appraised by 'the City Tax Office immediately upon completion of such improvements, regardless of whether such structures are located in an area being reappraised in any given year by that office. p l L 14-LLJ LFJ CITY OF ToMR SECTION 3. That the costs of improvements shall be determined by the value thereof as shown in the Building Permit Application obtained by the owner of such residence from the Building Inspection Division of the Public Works Department of the City of Fort Worth prior to commencement of work on said improvements. SECTION 4. That when the area where a residence which has been so improved is reappraised, such improvements as have been made will be considered by the City Tax Office in reappraising the value of such residence. SECTION 5. That this resolution shall take effect from and after January 1, 1979, in accordance with the provisions of the Charter of the City of Fort Worth, and it is accordingly so resolved. O CITT OF FORT WORTH